Human capital management and decent work: a systematic literature review of mediating mechanisms

Abstract

Public sector organizations increasingly face the challenge of reconciling strategic human capital (HC) management with the imperative of providing decent work. This systematic literature review (SLR) employs the PRISMA 2020 framework to synthesize 42 peer-reviewed studies (2015–2025), exploring the relationships between HC management, Flexible Working Arrangements (FWA), Artificial Intelligence (AI) adoption, Innovative Work Behavior (IWB), and decent work outcomes. Grounded in Human Capital Resources Theory, AMO Theory, and the Psychology of Working Theory, this review addresses a critical gap in the literature: the lack of an integrative model simultaneously testing FWA, AI, and IWB as mediating pathways. Thematic synthesis reveals four overarching findings: HC management serves as the primary strategic antecedent; FWA acts as a critical motivation-enhancer; AI functions as a key ability-enhancer; and IWB serves as the mechanism for opportunity expression. These findings are synthesized into an integrative AMO-based conceptual model, proposing six testable hypotheses for future empirical research. This review contributes to the field by extending AMO Theory to the normative construct of decent work and providing a structured framework for public sector institutions to address systemic workforce deficits. The proposed model offers a roadmap for researchers and policymakers to evaluate how coordinated HC interventions can foster sustainable, decent working conditions in accountability-intensive organizational contexts.

Keywords
  • Human Capital Management
  • Flexible Working Arrangement
  • Artificial Intelligence
  • Innovative Work Behavior
  • Decent Work
References
  1. Appelbaum, E., Bailey, T., Berg, P., & Kalleberg, A. (2000). Manufacturing advantage: Why high-performance work systems pay off. Cornell University Press.
  2. Armstrong, M. (2014). Handbook of human resource management practice (13th ed.). Kogan Page.
  3. Berente, N., Gu, B., Recker, J., & Santhanam, R. (2021). Managing artificial intelligence. MIS Quarterly, 45(3), 1433–1450. https://doi.org/10.25300/MISQ/2021/16274
  4. Blustein, D. L., Lysova, E. I., & Duffy, R. D. (2023). Decent work and meaningful work. Annual Review of Organizational Psychology and Organizational Behavior, 10, 691–714. https://doi.org/10.1146/annurev-orgpsych-031921-024847
  5. Bos-Nehles, A., Bondarouk, T., & Labrenz, S. (2023). AMO-Theory in HRM research: A systematic literature review and future research agenda. International Journal of Management Reviews, 25(1), 76–101. https://doi.org/10.1111/ijmr.12332
  6. Bos-Nehles, A. C., Renkema, M., & Janssen, O. (2017). HRM and innovative work behaviour: A systematic literature review. Personnel Review, 46(7), 1228–1253. https://doi.org/10.1108/PR-09-2016-0235
  7. Boudreau, J. W., & Cascio, W. F. (2017). Human capital analytics: Why are we not there? Journal of Organizational Effectiveness: People and Performance, 4(2), 119–126. https://doi.org/10.1108/JOEPP-03-2017-0021
  8. BPJS Ketenagakerjaan. (2024). Laporan Terintegrasi BPJS Ketenagakerjaan 2024. BPJS Ketenagakerjaan.
  9. Braganza, A., Chen, W., Canhoto, A., & Sap, S. (2021). Productive employment and decent work: The impact of AI adoption on psychological contracts, job engagement, and employee well-being. Journal of Business Research, 131, 485–494. https://doi.org/10.1016/j.jbusres.2021.01.012
  10. Capnary, M. C., Rachmawati, R., & Agung, I. (2018). The influence of flexibility of work to loyalty and employee satisfaction mediated by work life balance. Business: Theory and Practice, 19, 217–227.
  11. Chairani Putri Pratiwi, Sekar Wulan Prasetyaningtyas, Muhammad Ramaditya, Mohammad Ikhsan, and Cindy Rahayu. 2026. A Context-Risk Governance Framework for AI in Adaptive Learning: Transferring Insights from HR Recruitment Systems. In Proceedings of the 2026 Asia-Pacific Intelligent Educational Technologies Conference (APIET '26). Association for Computing Machinery, New York, NY, USA, 56–62. https://doi.org/10.1145/3796114.3796124
  12. Davidescu, A. A. M., Apostu, S.-A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees: Implications for sustainable human resource management. Sustainability, 12(15), 6086. https://doi.org/10.3390/su12156086
  13. Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Plenum.
  14. Deci, E. L., & Ryan, R. M. (2000). The 'what' and 'why' of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227–268. https://doi.org/10.1207/S15327965PLI1104_01
  15. Duffy, R. D., Blustein, D. L., Diemer, M. A., & Autin, K. L. (2016). The psychology of working theory. Journal of Counseling Psychology, 63(2), 127–148. https://doi.org/10.1037/cou0000140
  16. Duffy, R. D., Allan, B. A., England, J. W., Blustein, D. L., Autin, K. L., Douglass, R. P., Ferreira, J., & Santos, E. J. R. (2017). The development and initial validation of the Decent Work Scale. Journal of Counseling Psychology, 64(2), 206–221. https://doi.org/10.1037/cou0000191
  17. Ferryanto, H., Maarif, M. S., & Taryana, A. (2025). Flexible working arrangement scenario planning for the social security agency for employment. Indonesian Journal of Multidisciplinary Science, 4(4), 267–278. https://doi.org/10.55324/ijoms.v4i4.1086
  18. Hong, Q. N., Pluye, P., Fabregues, S., Bartlett, G., Boardman, F., Cargo, M., Dagenais, P., Gagnon, M.-P., Griffiths, F., Nicolau, B., O'Cathain, A., Rousseau, M.-C., & Vedel, I. (2018). Mixed methods appraisal tool (MMAT), version 2018. Industry Canada.
  19. Hobfoll, S. E. (1989). Conservation of resources: A new attempt at conceptualizing stress. American Psychologist, 44(3), 513–524. https://doi.org/10.1037/0003-066X.44.3.513
  20. Jiang, L., Pan, Z., Luo, Y., Guo, Z., & Kou, D. (2023). More flexible and more innovative: The impact of flexible work arrangements on the innovation behavior of knowledge employees. Frontiers in Psychology, 14, 1053242. https://doi.org/10.3389/fpsyg.2023.1053242
  21. Janssen, O. (2000). Job demands, perceptions of effort-reward fairness, and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73(3), 287–302. https://doi.org/10.1348/096317900167038
  22. Alkhalaf, S. et al. (2024). The effect of ability, motivation and opportunity (AMO) on SMEs innovation performance. Creativity and Innovation Management. https://doi.org/10.1111/caim.12600
  23. Moliterno, T. P. (2025). Artificial intelligence and human capital resources: Implications for emergence and management. [Working paper / forthcoming — verify current publication status before submission]
  24. Nosratabadi, S., Khoa, B. T., Sardi, A., Winkler, I., Pirzadeh, A., Khosravi, A., & Mosavi, A. (2022). Artificial intelligence models and employee lifecycle management: A systematic literature review. Frontiers in Sociology, 7, 878114. https://doi.org/10.3389/fsoc.2022.878114
  25. Nyabvudzi, T., & Chinyamurindi, W. (2025). The impact of technology factors on work engagement, decent work and job satisfaction in the South African public service. Employee Relations: The International Journal. https://doi.org/10.1108/ER-12-2023-0680
  26. Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., ... Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
  27. Parker, S. K., & Grote, G. (2022). Automation, algorithms, and beyond: Why work design matters more than ever in the new world of work. Applied Psychology, 71(4), 1171–1204. https://doi.org/10.1111/apps.12241
  28. Parker, S. K., & Knight, C. (2024). SMART work design: A new model for motivating jobs in the digital age. Human Resource Management, 63(2), 211–229. https://doi.org/10.1002/hrm.22236
  29. Petermann, M. K. B., & Zacher, H. (2021). Agility in the workplace: Conceptual analysis, contributing factors, and practical examples. Industrial and Organizational Psychology, 14(3), 308–341. https://doi.org/10.1017/iop.2021.32
  30. Ployhart, R. E., & Moliterno, T. P. (2011). Emergence of the human capital resource: A multilevel model. Academy of Management Review, 36(1), 127–150. https://doi.org/10.5465/amr.2009.0318
  31. Qian, J., Chen, J., & Zhao, S. (2025). 'Remaining vigilant' while 'enjoying prosperity': How artificial intelligence usage impacts employees' innovative behavior and proactive skill development. Behavioral Sciences, 15(4), 465. https://doi.org/10.3390/bs15040465
  32. Rahmawati, F., & Pusparini, M. (2023). Pengaruh flexible working arrangements dan perceived supervisor support terhadap work engagement dan employee performance pada organisasi keuangan pemerintah Indonesia. Jurnal Bisnis dan Manajemen, 14(4), 322–342.
  33. Ray, J. L., Ployhart, R. E., & Weekley, J. A. (2023). A decade of human capital resources research: A review, assessment, and directions for future research. Journal of Management, 49(1), 310–339. https://doi.org/10.1177/01492063221193301
  34. Richter, A., Haelermans, C., Koeppen, K., & Staudt, J. (2021). Creative self-efficacy mediates the relationship between creative work environment and creative performance. Journal of Organizational Behavior, 42(3), 398–414. https://doi.org/10.1002/job.2573
  35. Ramaditya M, Maarif MS, Affandi J and Sukmawati A (2022) Reinventing talent management: How to maximize performance in higher education. Front. Educ. 7:929697. doi: 10.3389/feduc.2022.929697
  36. Ramaditya M, Effendi S and Burda A (2023) Survival and human resource strategies of private higher education in facing an era of change: Insight from Indonesia. Front. Educ. 8:1141123. doi: 10.3389/feduc.2023.1141123
  37. Rosa, L. et al. (2025). Conceptual model of decent work: Preconditions, driving forces and consequences. [Verify journal and DOI with author prior to submission]
  38. Ryan, R. M., & Deci, E. L. (2017). Self-determination theory: Basic psychological needs in motivation, development, and wellness. Guilford Press.
  39. Siddaway, A. P., Wood, A. M., & Hedges, L. V. (2019). How to do a systematic review: A best practice guide for conducting and reporting narrative reviews, meta-analyses, and meta-syntheses. Annual Review of Psychology, 70, 747–770. https://doi.org/10.1146/annurev-psych-010418-102803
  40. Thomas, J., & Harden, A. (2008). Methods for the thematic synthesis of qualitative research in systematic reviews. BMC Medical Research Methodology, 8(1), 45. https://doi.org/10.1186/1471-2288-8-45
  41. Ulrich, D., Younger, J., Brockbank, W., & Ulrich, M. (2012). HR from the outside in: Six competencies for the future of human resources. McGraw-Hill.
  42. Van den Broeck, A., Ferris, D. L., Chang, C.-H., & Rosen, C. C. (2016). A review of self-determination theory's basic psychological needs at work. Journal of Management, 42(5), 1195–1229. https://doi.org/10.1177/0149206316632058
  43. Vrontis, D., Christofi, M., Pereira, V., Tarba, S., Makrides, A., & Trichina, E. (2022). Artificial intelligence, robotics, advanced technologies and human resource management: A systematic review. The International Journal of Human Resource Management, 33(6), 1237–1266. https://doi.org/10.1080/09585192.2020.1871398
  44. Wang, X., & Long, L. (2025). The innovation paradox in human-AI symbiosis: Ambidextrous effects of AI technology adoption on innovative behavior. Frontiers in Artificial Intelligence, 8, 1635246. https://doi.org/10.3389/frai.2025.1635246
  45. Weideman, M., & Hofmeyr, K. (2021). The influence of flexible work arrangements on employee engagement. SA Journal of Human Resource Management, 18, a1209. https://doi.org/10.4102/sajhrm.v18i0.1209
  46. Yan, Y., Deng, D., Geng, Y., Gao, J., & Lin, E. (2023). The dual influence path of decent work perception on employee innovative behavior. Frontiers in Psychology, 14, 1302945. https://doi.org/10.3389/fpsyg.2023.1302945
  47. Zhang, X., Wang, D., Liu, C., & Su, J. (2024). Innovative work behavior in digital organizations: Mechanisms and organizational conditions. Human Resource Management Review, 34(1), 100975. https://doi.org/10.1016/j.hrmr.2023.100975